Babcock & Wilcox Enterprises, Inc. reported a significant increase in revenue for the first quarter of 2026, achieving $214.4 million, up from $148.6 million in the same period last year. This 44% increase was primarily driven by a rise in large project volumes, including $31 million from a contract with Base Electron for the design and installation of natural gas-fired power plants. Despite the revenue growth, the company recorded a net loss attributable to stockholders of $80.7 million, compared to a loss of $25.7 million in the prior year, largely due to a non-cash expense of $70.2 million related to the change in fair value of customer warrants.
The company's operating loss improved slightly to $1.7 million from $1.8 million year-over-year, reflecting increased costs associated with higher project volumes. Total costs and expenses rose to $216.1 million, up from $150.4 million, with significant contributions from cost of operations and selling, general, and administrative expenses, which increased by $50.1 million and $16.1 million, respectively. The increase in SG&A expenses was attributed to higher stock-based compensation costs driven by an increase in the company's stock price.
Babcock & Wilcox continued its strategic focus on divesting non-core businesses, having completed several significant transactions in the past year. The company sold its Diamond Power business for $177 million in July 2025, recording a gain of $53.2 million, and also divested its ASH business for $29 million in October 2025. These divestitures are part of a broader strategy to streamline operations and improve financial stability. As of March 31, 2026, the company reported a backlog of $2.7 billion, indicating strong future revenue potential.
Operationally, Babcock & Wilcox's cash and cash equivalents, along with restricted cash, totaled $194.8 million at the end of the quarter, while total debt stood at $275.9 million. The company generated $17.8 million in cash from operating activities, primarily due to non-cash adjustments and favorable changes in working capital. The company’s liquidity position is supported by its Credit Agreement, which provides up to $150 million in borrowing capacity, and management believes that current resources will be sufficient to meet foreseeable liquidity needs.
Looking ahead, Babcock & Wilcox anticipates continued demand for its services, particularly in the context of increasing energy needs driven by economic growth and technological advancements. The company is focused on executing its growth strategy while managing its financial obligations and improving operational efficiencies. However, management remains cautious about potential market fluctuations and the impact of ongoing economic conditions on future performance.
About Babcock & Wilcox Enterprises, Inc.
Babcock & Wilcox Enterprises, Inc. provides renewable, environmental, and thermal energy technologies and services globally. Its core segments include hydrogen generation, emissions control, waste-to-energy, and steam generation systems for industrial, utility, and municipal customers. The company offers engineered equipment, aftermarket parts, and maintenance services, leveraging over 155 years of experience and a broad installed base to support energy transition and environmental compliance in power generation and industrial markets.
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